CSLB TEST LAW EXAM ACTUAL QUESTIONS AND
ANSWERS 2025/2026 A+ GRADE.
AYperson may serve as the qualifying individual for no more than three (3) firms in any one-year period - -
CORRECT ANSWER -
SOLE OWNERSHIP LICENSE, your qualifier may be either an RME or you, the owner - - CORRECT
ANSWER - Business income is reported as personal income; not transferable
PARTNERSHIP LICENSE, your qualifier may either be one of the general partners (who shall be designated
as the qualifying partner) or an RME - - CORRECT ANSWER -
Uses the financial and personal resources of two or more individuals who share in the owningYand runnin
g of the business. It's easily established requiring only the registration of the business name if one of the
people leaves they must request a one year continuance license
CORPORATE LICENSE, your qualifier may be either oneYif the officers listed in CSLB Records for your licens
e or an RME - - CORRECT ANSWER -
SEPARATE LEGALYENTITY created by the government. May raise capital by selling stockYto private investor
s or to the public; 90 days if you add one person
LIMITED LIABILITY COMPANY LICENSE your qualifier may be a responsible managing member, responsibl
e managing manager, RMO or RME - - CORRECT ANSWER -
Hybrid of a partnership and a corporation. It's owners are shielded from personal liability and all profits a
nd losses pass directly to the owners without taxation of the entity itself. LLCYis owned by its members; 9
0 days
Yes. It is your responsibility to file a contractor license bond valued at $15,000 or equivalent cash deposit
with the registrar - - CORRECT ANSWER -
If you have a limited liability company license, a separate $100,000 surety bond is required for the benefi
t of an employee or worker damaged - - CORRECT ANSWER -
Most bonds are issued for a period of one (1) to three (3) years - - CORRECT ANSWER -
, All contractors are required to present proof of workers compensation insurance coverage as a condition
of licensure or to maintain an active license - - CORRECT ANSWER -
How long isYa license valid? - - CORRECT ANSWER -
Two years from the last day of the month in which it was issued
License renewed - - CORRECT ANSWER -
Every 2 years if renewed on an active status or for four years if renewed inactive status
Contractor bond is required $15,000 for all classification - - CORRECT ANSWER -
Bonds are not transferable---
they cannot be transferred from one license to another or from one qualifying individual to another - -
CORRECT ANSWER -
Bonds must be filed with the CSLB within 90 days of the effective date of the bond - - CORRECT ANSWER -
You may add a classification to your existing license only if the license is renewed or current - -
CORRECT ANSWER -
OSHA (3) days for serious violations and within (14) days for non serious violations - - CORRECT ANSWER -
No minor, under the age of 16 shall be employed or permitted to work in any capacity of hard labor - -
CORRECT ANSWER -
BONDS 1%-2% - - CORRECT ANSWER -
PERFORMANCE BONDS - - CORRECT ANSWER -
Guarantee the projects completion according to building plans and specifications. If the job is abandoned
or the workYis unacceptable, the bonding company has the option of hiring another contractor to compl
ete the work or of settlingYfor damages
ANSWERS 2025/2026 A+ GRADE.
AYperson may serve as the qualifying individual for no more than three (3) firms in any one-year period - -
CORRECT ANSWER -
SOLE OWNERSHIP LICENSE, your qualifier may be either an RME or you, the owner - - CORRECT
ANSWER - Business income is reported as personal income; not transferable
PARTNERSHIP LICENSE, your qualifier may either be one of the general partners (who shall be designated
as the qualifying partner) or an RME - - CORRECT ANSWER -
Uses the financial and personal resources of two or more individuals who share in the owningYand runnin
g of the business. It's easily established requiring only the registration of the business name if one of the
people leaves they must request a one year continuance license
CORPORATE LICENSE, your qualifier may be either oneYif the officers listed in CSLB Records for your licens
e or an RME - - CORRECT ANSWER -
SEPARATE LEGALYENTITY created by the government. May raise capital by selling stockYto private investor
s or to the public; 90 days if you add one person
LIMITED LIABILITY COMPANY LICENSE your qualifier may be a responsible managing member, responsibl
e managing manager, RMO or RME - - CORRECT ANSWER -
Hybrid of a partnership and a corporation. It's owners are shielded from personal liability and all profits a
nd losses pass directly to the owners without taxation of the entity itself. LLCYis owned by its members; 9
0 days
Yes. It is your responsibility to file a contractor license bond valued at $15,000 or equivalent cash deposit
with the registrar - - CORRECT ANSWER -
If you have a limited liability company license, a separate $100,000 surety bond is required for the benefi
t of an employee or worker damaged - - CORRECT ANSWER -
Most bonds are issued for a period of one (1) to three (3) years - - CORRECT ANSWER -
, All contractors are required to present proof of workers compensation insurance coverage as a condition
of licensure or to maintain an active license - - CORRECT ANSWER -
How long isYa license valid? - - CORRECT ANSWER -
Two years from the last day of the month in which it was issued
License renewed - - CORRECT ANSWER -
Every 2 years if renewed on an active status or for four years if renewed inactive status
Contractor bond is required $15,000 for all classification - - CORRECT ANSWER -
Bonds are not transferable---
they cannot be transferred from one license to another or from one qualifying individual to another - -
CORRECT ANSWER -
Bonds must be filed with the CSLB within 90 days of the effective date of the bond - - CORRECT ANSWER -
You may add a classification to your existing license only if the license is renewed or current - -
CORRECT ANSWER -
OSHA (3) days for serious violations and within (14) days for non serious violations - - CORRECT ANSWER -
No minor, under the age of 16 shall be employed or permitted to work in any capacity of hard labor - -
CORRECT ANSWER -
BONDS 1%-2% - - CORRECT ANSWER -
PERFORMANCE BONDS - - CORRECT ANSWER -
Guarantee the projects completion according to building plans and specifications. If the job is abandoned
or the workYis unacceptable, the bonding company has the option of hiring another contractor to compl
ete the work or of settlingYfor damages
